Allowed

Canara Bank v. Siddegowda

DRT28 Oct 2025OA/866/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for a recovery certificate. Since the defendant appeared ex parte, the undisputed evidence of default on an agricultural loan was accepted, and a recovery order with reduced interest was passed allowing execution proceedings against property.

What did the court decide?

Issuance of recovery certificate for Rs.36,15,484/-. Interest reduced to 6% p.a. (Simple) from filing till realization. Certificate executable against schedule property and defendant's other assets.

Canara Bank versus Siddegowda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.866/2023

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BETWEEN:

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Canara Bank Hassan Main-1 P.O. No.45, Near Narasimharaja Circle, Mallnad House, Hassan-573201 …APPLICANT

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AND:

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Sri. Siddegowda S/o. Late Ningegowda R/at: K Aladahally Shanthigrama Hobli, Hassan Taluk, Hassan District- 573121 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Malini Vinay Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for

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Rs.36,15,484/- (Rupees thirty six lakh fifteen thousand four

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OA 866-2023

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hundred eighty four only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the Agricultural loan credit facilities of Rs.5,22,000/- (Rupees five lakh twenty two thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with sanction memorandum, simple mortgage deed and letters of revival in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 06.11.2024.

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OA 866-2023

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-13 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application

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remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and

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OA 866-2023

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the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendant for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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In the result, OA.No.866/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.36,15,484/- (Rupees thirty six lakh fifteen thousand

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four hundred eighty four only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant

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personally after giving credit to all the amount recovered and

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OA 866-2023

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received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property.

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Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant

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personally and his other assets are liable to be proceeded against

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for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 28^th day of October, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 866-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Muralidhar, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	14.11.2005	Application form
A2	14.11.2005	Sanction memorandum
A3	10.11.2005	Registered simple mortgage deed
A4	14.11.2005	Memorandum of agreement for agricultural loan
A5	08.07.2008	Letter of revival
A6	25.02.2011	Letter of revival
A7	20.07.2013	Letter of revival
A8	28.12.2015	Letter of revival
A9	28.11.2018	Letter of revival
A10	17.08.2021	Letter of revival
A11 & A12	24.04.2023	Legal notice along with postal receipt
A13		Statement of accounts

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Siddegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Siddegowda

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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